Clare Daly
Question:91. Deputy Clare Daly asked the Minister for Finance the reason there are no flat rate expenses for special needs assistants even though this rate exists for many other workers. [19372/14]
View answerWednesday, 30 April 2014
Questions (91)
Written answers
In relation to flat rate expenses, the position is that tax law provides that employees and office holders may claim a tax deduction in respect of:
(a) the cost of travelling expenses necessarily incurred in the performance of the duties of their employment or office; and
(b) the cost of other expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment or office.
As regards an expenses claim under (b) above, I understand from the Revenue Commissioners that, in strictness, each employee or office holder should submit his or her individual expenses claim to Revenue. However, by way of long standing practice stretching back over 40 years, the expenses deduction due for certain categories of employee are, for administrative ease, agreed between Revenue and the relevant representative bodies. These agreed rates of expenses are granted to individuals in their determination of tax credits for PAYE purposes and have become known as "flat rate expenses".
Therefore, some employees obtain their statutory tax deduction in respect of expenses via the administrative "flat rate expenses" regime whilst others may obtain their tax deduction on foot of an individual claim submitted to the Revenue Commissioners in accordance with the relevant tax legislation. In order to apply for the flat rate expenses regime, the relevant representative body should contact the Revenue Commissioners.